It’s Official: Black Friday Sales Plunge 10% From Last Year

Total sales in the US on Black Friday fell 10% to $10.4bn this year, down from $11.6bn in 2014, according to research firm ShopperTrak. – The Guardian

Store-based sales dropped $1.2 billion, while online sales increased $150 million. The media is going to highlight the increase in online sales. But remember, online sales represent only 6% of total retail sales. The plunge in brick-and-mortar sales was nearly 10x greater in total dollars than was the increase in cyber sales.

The bottom line is that consumer is dead on arrival. Stagnating nominal wage growth, decline real (inflation-adjusted) median household income and skyrocketing non-discretionary expenses are eating the middle class alive. Throw in the huge increase in Obamacare premiums and it’s like throwing gasoline into a bonfire.

The retailer stocks are going to get crushed, regardless of what happens with the five stocks used by the Fed and the banks to keep the overall S&P 500/Dow indices propped up (Facebook, Amazon, Netflix, Alphabet (Google) and Disney).